ICAEW Advocates for Practical Implementation of New VAT Relief on Donated Goods

• ICAEW supports new VAT relief for donated goods.
• The government launched a consultation on VAT relief for donated goods in April 2025.
• Current VAT relief for donated goods is limited and the government seeks to expand it.
• ICAEW responded to the consultation with recommendations to ensure the relief is effective and simple.
• ICAEW generally does not support new VAT reliefs but acknowledges the need in this case.
• ICAEW suggests limiting relief to donations to bodies with charitable status.
• ICAEW favors a certification system to avoid burdening donors.
• ICAEW advises against value thresholds and categorizing eligible goods.
• ICAEW warns against restrictions based on recipient characteristics or use of goods.

Source: icaew.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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